NEW YORK (TheStreet) -- Shares of Nevsun Resources (NSU) surged more than 13% to a 52-week high of $4.51 in morning trading Thursday on news that mining fund QKR Corp. could be close to bidding approximately $1 billion for the company, according to Bloomberg.
Negotiations are ongoing between QKR, funded by Qatar's sovereign wealth fund and Poland's richest man Jan Kulczyk, and Nevsun, which owns approximately 60% of the Bisha gold, copper and zinc mine in Eritrea. There is no guarantee the two sides will reach a deal, according to Bloomberg.
The Bisha acquisition would be QKR's second after it bought AngloGold Ashanti's (AU) Navachab mine in Namibia for $110 million in July.
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More than 1.4 million shares of the Vancouver-based Nevsun had changed hands as of 10:51 a.m., compared to the average daily volume of 324,255.
Separately, TheStreet Ratings team rates NEVSUN RESOURCES LTD as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEVSUN RESOURCES LTD (NSU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."